Gold Prices Weaken in Asia, US Dollar Remains a Pressure
Newsmaker.id - Global gold prices weakened in Asian trading this morning, Tuesday (July 7). Based on global spot price data at 7:01 a.m. WIB (Western Indonesian Time), gold was trading at around US$4,155.27 per troy ounce, down US$25.11 from its previous level. Calculated per gram, the global gold price was around US$133.60 per gram.
Pressure on gold continues to come from the strengthening US dollar. A stronger dollar makes gold more expensive for buyers using other currencies, thus dampening interest in the precious metal. In previous trading, gold also experienced a correction after the US dollar strengthened and investors awaited guidance from the Federal Reserve's meeting minutes.
In terms of economic data, the market was watching the release of the US ISM Services PMI, which fell to 54.0 in June from 54.5. Despite the slowdown, this figure remains above 50, indicating that the US services sector remains in the expansion zone.
The inflation component of the report indicates that price pressures are easing. The Prices Paid Index fell to 67.7 from 71.3, while the Employment Index rose to 51.2, indicating that service sector employment is improving. This data sends mixed signals to the market: inflation has eased slightly, but the US economy has not yet shown a deep weakening.
For the next movement, the market focus remains on the direction of the US dollar, Fed interest rate expectations, and this week's FOMC minutes. If the dollar remains strong, gold will likely struggle to rise aggressively. However, if subsequent US economic data shows a deeper slowdown, there is still a chance for gold to recover. (CP)
